Breaking: Federal Government To Prosecute Sokoloan, NowCash, Others Over Privacy Abuse
- The federal government of Nigeria is set to commence investigation into some illegl practices in money lending industry
- Specifically, the FG through FCCPC, ICPC, EFCC, NITDA, NHRC and CBN will be investigating rights abuses by the loan operators
- Some loan apps in Nigeria include Sokoloan, Nowcash, Lcredit, NowCash, 9credit, Moneyloanplus, monicash
Some federal government agencies have resolved to commence investigations of rights violations in money-lending industry.
This was disclosed in a statement by the Federal Competition & Consumer Protection Commission (FCCPC). The agency revealed that the investigation will be carried out in conjunction with Independent Corrupt Practices Commission (ICPC) Economic and Financial Crimes Commission (EFCC) National Information Technology Development Agency (NITDA) National Human Rights Commission (NHRC) and Central Bank of Nigeria.
The statement reads:
"The Federal Competition and Consumer Protection Commission on November 10, 2021; hosted a meeting attended by the Chief Executive Officer of the Independent Corrupt Practices Commission (ICPC), and representatives of the National Information Technology Development Agency (NITDA) and the Central Bank of Nigeria (CBN);in leading an effort to address multiple potentially dubious conduct of certain money lenders, otherwise known as loan sharks.
"Continuing complaints about questionable repayment enforcement practices including public shaming and violations of privacy, arbitrary, unjust, unreasonable, or exploitative interest rates and or loan balances calculations, harassment, and failure of consumer feedback mechanisms among others have led to significant and understandable consumer aggravation and dissatisfaction.
"Initial inquiries demonstrate that many of the purported lenders are not legally acceptably established or otherwise licensed by the appropriate authorities to engage in the services they ostensibly provide.
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"Continuing complaints about questionable repayment enforcement practices including public shaming and violations of privacy, arbitrary, unjust, unreasonable, or exploitative interest rates and or loan balances calculations, harassment, and failure of consumer feedback mechanisms among others have led to significant and understandable consumer aggravation and dissatisfaction.
According to many Nigerians who have fallen victims of some of these companies, in efforts to recover their money, some of these loan companies employ illegal means to force customers to repay their loans, including blatant lies and threats.
Source: Facebook
They exploit their customers’ personal information, compromising their privacy, and sharing it with those who were not involved in the initial arrangement.
Also, these loan app operators send embarrassing short messages service (SMS) and WhatsApp messages to the close contacts of their loan defaulters with the intention of shaming the defaulters, tagging them with terms like ‘criminal,’ ‘fraudster,’ and ‘terrible debtor’ among others.
In fact, full names, phone numbers and pictures of the alleged loan defaulters are shared with their contacts like religious leaders, members of churches and mosques, close friends, bosses, colleagues and family members.
Here are samples of messages sent to contacts of their customers by some of these loan companies
TREAT AS URGENT: This is to inform the general public that: : name name Phone number:Xxxxxxxxxxxx and xxxxxxxxxxxx is a DECIETFUL PERSON,THIS PERSON has PROVEN to be a RUTHLESS/CHRONIC and UNREMORSEFUL DEBTOR who goes about COLLECTING MONEY from different COMPANY .This person is currently on the run with our company's money and has refused to pay nor pick our calls. Be informed that this person has been declared wanted. Pls contact us if you have any information about this person as soon as possible, else the company will proceed to the next action, because this person provided us with all your details and if you are not aware of this loan you can as well call the person to delete your information in the app because soon the person pictures along side your own pictures will be posted on all social media in the next FEW HOURS.
They also shame their customer's family
The Fraudulent Family of the name name are thieves xxxxxxxx and 080xxxxxxxx(Mum)/070xxxxxxxx(Dad)* Who stole money from a Loan company. The public is warned of this family às they are known to be dangerous thieves. They will be caught by securities and will face the law. Proof available if denied.
Loan apps painful encounters: Nigerians narrate terrible experiences from lending companies
Recall that Legit.ng had reported that several loan firms in Nigeria like Sokoloan, NowCash, Lcredit, 9Credit have continued to violate the rules and regulations of the Central Bank of Nigeria when it comes to approval from the apex bank, ICR reports.
Aside from this, they have also perfected the use of crude methods similar to Shylock tactic to enforce loan repayment from their customers.
They also employ different illegal ways against anyone unlucky enough to default on any loan taken from them.
Source: Legit.ng
